This is interesting, and quite controversial.

Got me thinking: Should ANY homeowner be able to just walk away?

The primary residence owner who caught a bad break - perhaps.

The speculators who overdid, or were mad because they didn't turn profit after profit? Why?

Who ultimately pays for giving them a pass?

OK OK, I'm off to class today. LOL! That's what we get for making me think .  .  .  :)

Ok guys, I don't get it.  The guy in the video "was" in the mortgage industry.  Did he have no clue when he signed up for the program and bought his house that he did that his payments would balloon to over $4400?  It's pretty sad when people in the industry that should have know full well what they were signing up for then are crying now over the end result.  How many others did he sign up for the same program that he himself is now saying he can't handle and feed his children so he could get his paychecks?  And those people that he endorsed the program to that were not in the business who truly did not know they would end up in this mess?  

What a value agents (could have then) can bring now in educating clients and watching out for what they are doing with loans.  I, and my recommended lenders, turned buyers down years ago looking at the end result - only to see someone picked up the ball and got them into something that now (and they do call me now) they can't afford.  Can't say I didn't warn them, but I never play the I told you so card (no point). What do you say to these folks when they call now wanting you to take care of a short sale or advise on what to do? The people that got them in, like this guy, are not even around to help them - the ones that are will not return their calls.  What an unfortunate mess!  

Hello Gail,

I must say that Candice has a point on this, (Controversial).

The gentleman in the news interview was in the financial industry and I'm sure he knew what he was signing when he bought the "Modest"

500k plus Home with a payment of 2,500 a month.

Even at 5% when he bought the home his payment should have been 2,700 of more plus taxes and insurance so probably more like $3,700 + and he knew it.

This is another example of someone with an idea to make money in these tough times and honestly why would these people advertise that you don't need to even make an attempt to pay anything for 8 months ?

I think it is better to advise people to call there lender and try to make some sort of arrangement, And if that can't be put together somehow then inform the lender that you will have to leave but at least try to make it as smooth as possible by cooperating as best they can.

As for the speculators that were having a field day with all of this, They should not get any breaks that involve tax money (period).......

IMHO it may make you look good to some folks to tell them about this website but what happens if it turns out just costing money to get this so called help and something goes wrong who will they blame then ?

Gail,

This is a repeat of a response I gave Gary Szolosi this morning when he replied to my post "Jack the Ripper":   "Yesterday on National Public Radio (NPR) there was a news segment exposing another trend of swindlers, those who take advantage of people when they are down.  They are a new breed of scavengers who now specialize in exploiting people who are in short sale mode or in foreclosure."

I agree with NPR.  We should beware of those so called "Good Samaritan" businesses.  There must be something very rewarding for them, otherwise, they wouldn't bother doing it in the first place.  When something sounds "Too good to be true" it is usually "Too good to be true!"

Gail, unfortunately that is the way the unscrupulous have preyed upon the disadvantaged since the beginning of time. If it isn't some ploy to gain access to your checking account, some ploy to take advantage of the elderly, it will be some ploy to take advantage of the home owner that made a bad decision or has fallen on hard times.

Those that perpetrate these scams will get their due in time. We as Realtors have an obligation to report any thing we see as questionable to the local authorities but we have very limited abilities to stop the cons from conning those that are vulnerable.

Perhaps someone that would have fallen prey to the unscroupulous con artist will read your post and be saved but short of that, this is a reality of life that some where, some how, someone will be bilked out of their money. Sad but true.

Gail I have to say this is not so new to us in our neck of the woods.I have 4 properties out of 15 listed that are distressed sales.However I am seeing the Counties stepping up the Sheriff sales at a good clip now and are not letting people stay in their homes.I have had one clients file all the paperwork for a short sale and was told by the mortgage company that if they did a short sale they had to be out of the home in one week. I guess that it is to protect their interest as the so to be owner of the home. What I am seeing is no longer 8 months but 6 months in some areas. What I will do is take a look at the site you suggested and see if it will help any of my clients. Thanks so much for getting this out to us.

OK - after the blame shame game is over, we could remember that we are in the helping business.

Why would we need to send them to see a show when we can advise them?

I used to tell my short sale or foreclosure bound clients that "Foreclosure is a very serious matter, can hurt your credit score for a long time.  If there is any other way (short sale?) do it.  However, if foreclosure is the only way then know this.  It can take 6 months to a year for a foreclosure to work through the system, maybe longer.  You may have a redemption period after that - as long as you are still living in the house.  You may live in the house the whole time, rent free, if it helps you get back on your feet.  If you want more details you can consult a lawyer - and you probably should.  But don't let the bank convince you that you have to move out - only the sheriff can do that and the sheriffs office, not the bank, will let you know when that time is here."  

Gail I read your blog yesterday and have been thinking about the fraud issue you linked us up to.  Most sellers have to show a legitimate hardship to do a short sale.  Dropping home values and not paying your mortgage payment are not normally considered a hardship.  I think there must be a lot more to that fraud then the blog article brought out for that fraud to be successful.

I like the Hope Now Alliance for distressed homeowners to start at.  Good info there. http://www.hopenow.com/

Jana